Investors push Mirum Pharmaceuticals (NASDAQ:MIRM) 11% lower this week, company's increasing losses might be to blame
The Mirum Pharmaceuticals, Inc. (NASDAQ:MIRM) share price has had a bad week, falling 11%. But that doesn't change the reality that over twelve months the stock has done really well. After all, the share price is up a market-beating 35% in that time.
While this past week has detracted from the company's one-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment.
View our latest analysis for Mirum Pharmaceuticals
Given that Mirum Pharmaceuticals didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Over the last twelve months, Mirum Pharmaceuticals' revenue grew by 199%. That's a head and shoulders above most loss-making companies. While the share price gain of 35% over twelve months is pretty tasty, you might argue it doesn't fully reflect the strong revenue growth. If that's the case, now might be the time to take a close look at Mirum Pharmaceuticals. Human beings have trouble conceptualizing (and valuing) exponential growth. Is that what we're seeing here?
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
If you are thinking of buying or selling Mirum Pharmaceuticals stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We're pleased to report that Mirum Pharmaceuticals rewarded shareholders with a total shareholder return of 35% over the last year. That's better than the annualized TSR of 8% over the last three years. The improving returns to shareholders suggests the stock is becoming more popular with time. It's always interesting to track share price performance over the longer term. But to understand Mirum Pharmaceuticals better, we need to consider many other factors. For example, we've discovered 2 warning signs for Mirum Pharmaceuticals (1 is a bit unpleasant!) that you should be aware of before investing here.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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